Best Reverse Mortgage Lenders of 2022

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Reverse mortgages give homeowners age 62 and older the ability to get tax-free cash payments while staying in their home. This income can serve as a much-needed source of funds to pay for retirement expenses. The most common type of reverse mortgage is the home equity conversion mortgage (HECM).

However, reverse mortgages can be complicated and expensive, so it’s best to shop around for a reverse mortgage lender. Because it is a relatively niche product, there are only a few major players in the reverse mortgage space compared to other types of mortgages.

Methodology

To determine the best reverse mortgage lenders, Bankrate evaluated lenders based on several criteria, including availability, customer experience, and lending options.

The best lenders for reverse mortgages

American Advisory Group (AAG)
Reverse Mortgage Options HECM, lump sum, line of credit, jumbo, reverse for purchase
Terms
  • For HECMs, borrowers must be 62 or older and have substantial equity or own and live in their free and unobstructed home, and follow HUD-approved advice
  • Must continue to pay homeowners insurance and maintenance, property taxes, and any HOA dues
Advantages
  • Available in all US states
  • Borrow up to $4 million with a giant reverse mortgage
  • Usually waives service fees
The inconvenients
  • Only nine branches
Underline AAG is by far the largest reverse mortgage lender in the United States

Finances of America upside down
Reverse Mortgage Options HECM, lump sum, line of credit, jumbo, reverse for purchase, EquityAvail, HomeSafe
Terms
  • For HECMs, borrowers must be 62 or older and have substantial equity or own and live in their free and unobstructed home, and follow HUD-approved advice
  • For EquityAvail or HomeSafe, borrowers must be 55 or older
  • For EquityAvail, borrowers must make payments for the first 10 years
  • Must continue to pay homeowners insurance and maintenance, property taxes, and any HOA dues
Advantages
  • Diversified product range, including for people close to retirement
  • No origination fees on certain loans
The inconvenients
  • EquityAvail and HomeSafe not available in all states
Underline Finance of America Reverse’s reverse mortgage packages include unique options for different types of borrowers.

Reverse Mortgage Financing
Reverse Mortgage Options HECM, Lump Sum, Line of Credit, Returned for Purchase, Equity Elite
Terms
  • For HECMs, borrowers must be 62 years of age or older and have substantial equity (at least 50%) or own and live in their free and unobstructed home, and follow HUD-approved advice
  • For Equity Elite, borrowers must be 55 years of age or older
  • Must continue to pay homeowners insurance and maintenance, property taxes, and any HOA dues
Advantages
  • Available in all US states
  • Lender credits on certain loans
  • Online resources like home equity calculator and learning center
The inconvenients
  • Equity Elite is not available in all states
Underline Like those of some other reverse mortgage lenders, the exclusive Reverse Mortgage Funding product is available for young borrowers.

Omaha Reverse Mortgage Mutual
Reverse Mortgage Options HECM, lump sum, line of credit, jumbo, reverse for purchase, HomeSafe
Terms
  • For HECMs, borrowers must be 62 or older and have substantial equity or own and live in their free and unobstructed home, and follow HUD-approved advice
Advantages
  • Available in all US states except New York and West Virginia
  • No mortgage insurance on HomeSafe loans
The inconvenients
  • No products for borrowers under 62
Underline Mutual of Omaha’s HomeSafe allows borrowers access to up to $4 million, which is above the HECM limit.

Longbridge Financial
Reverse Mortgage Options HECM, Lump Sum, Line of Credit, Jumbo, Returned for Purchase, Platinum
Terms
  • For HECMs, borrowers must be 62 years of age or older and have substantial equity (at least 50%) or own and live in their free and unobstructed home, and follow HUD-approved advice
  • For Platinum, borrowers must be 55 or older
Advantages
  • Better Business Bureau A+ Rating
  • Easy to navigate website with detailed guides and information
  • Mobile application for loan service
  • Specializing in reverse mortgages only
  • $500 Military Discount
The inconvenients
  • No in-person support options
Underline Longbridge Financial was one of the top 10 reverse mortgage lenders in the United States in 2021.

How to Choose a Reverse Mortgage Lender

When comparing reverse mortgage lenders, consider which is more important to you: your bottom line (the cost), convenience of experience and service, or a combination:

  • Costs – Although there are no monthly payments with a HECM, it will still cost you money to obtain via the interest rate and fees. Closing costs for a HECM are pretty standard across the board, but some services cost more or less depending on the lender.
  • Customer service – Reverse mortgages have a complicated set of rules, and if you don’t follow them, you could lose your home. Pay attention to the responsiveness of the lender to your questions and to the opinions and testimonials of your customers.

Although reverse mortgages are generally a safe product, you should also be wary of signs of a reverse mortgage scam.

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